Cryptocurrency prices extended their sharp rebound on Tuesday, with bitcoin breaking above $80,000 for the first time since mid-May as a weaker U.S. dollar, renewed institutional inflows and concerns over currency debasement drove investors back into digital assets.
At around 10:37 a.m. UAE time, bitcoin traded near $$80,556.13, up about 4.23 percent over 24 hours, with a market capitalization of approximately $1.62 trillion and daily trading volume of about $60.56 billion.
Bitcoin had earlier touched $81,237.94, its highest level since mid-May. The cryptocurrency has risen about 28 percent so far in August and is on track for its strongest monthly performance since November 2024.
The broader cryptocurrency market was valued at approximately $2.71 trillion, up around 3.4 percent over 24 hours, while daily volume surged more than 50 percent to about $137.53 billion. Bitcoin dominance stood at 59.7 percent and ether dominance at 11.2 percent.
Bitcoin clears $80,000
Market sentiment has strengthened dramatically alongside the price recovery.
CoinMarketCap’s Crypto Fear and Greed Index reached 83 out of 100, signaling extreme greed, while its Altcoin Season Index stood at 38 out of 100, meaning the broader market remained in “Bitcoin Season” despite sharp gains across several major altcoins.
Bitcoin’s breakout accelerated after months of relatively compressed trading and declining volatility, conditions that left positioning particularly sensitive to a new macroeconomic catalyst.
That catalyst arrived when the U.S. Treasury announced plans to increase its liquidity-support purchases of longer-dated government securities.
The Treasury said the maximum size of buybacks in the 10-to-20-year and 20-to-30-year sectors will increase from $2 billion to at least $4 billion per operation, beginning September 9 and continuing through November 4.
The move pushed longer-term yields lower and shifted pressure toward the dollar, benefiting assets including bitcoin and gold.
Reuters reported that Treasury Secretary Scott Bessent’s intervention revived the so-called debasement trade, in which investors move toward scarce assets when they fear that attempts to control borrowing costs will put downward pressure on the purchasing power of fiat currencies.
Bitcoin has risen 16 percent since President Donald Trump renewed his call last week for Congress to advance cryptocurrency market-structure legislation, Reuters reported.
ETF demand returns
Institutional flows have added further momentum.
U.S.-listed spot bitcoin exchange-traded funds attracted $1.92 billion in net inflows last week, their largest weekly intake since October 10, 2025, when bitcoin was trading close to its record high.
Spot ether ETFs attracted another $697 million, their strongest weekly inflows since early October 2025.
Combined crypto ETF inflows reached $2.62 billion during the week.
Bitcoin itself gained 23.6 percent last week, marking its second-best weekly performance since early 2021, while ether climbed 31.3 percent.
Both cryptocurrencies also moved above their 200-day simple moving averages, a technical development closely watched by traders for indications that a longer-term trend is strengthening.
The U.S. Dollar Index, meanwhile, fell to around 98.9 and moved below its own 200-day average of 99.1, providing an additional tailwind for crypto assets.
Solana leads majors
Ethereum traded near $2,494 at the latest check, gaining about 2.7 percent over 24 hours, with a market capitalization of approximately $301 billion and daily volume near $23.9 billion.
The earlier supplied snapshot placed ether at $2,507.94, up 2.62 percent over 24 hours and 32.68 percent over seven days, demonstrating how rapidly prices were moving during Tuesday’s session.
Solana was among the strongest major cryptocurrencies, trading around $102.21 and rising about 8.6 percent over 24 hours. Its market capitalization reached roughly $59.63 billion, while daily trading volume climbed to about $7.46 billion.
XRP traded around $1.51, up approximately 2.5 percent over 24 hours, with a market capitalization close to $94.94 billion and trading volume of about $6.75 billion.
BNB was around $717 in the supplied snapshot, gaining 2.98 percent, while XRP’s seven-day advance remained above 50 percent and Solana had risen more than 35 percent over the week.
Solana supply vote
Solana’s particularly strong performance coincided with validator voting on three governance proposals, two of which could slow new token issuance and substantially increase the amount of SOL permanently removed from circulation.
Voting began Sunday and is scheduled to continue until Thursday at around 15:30 UTC. Votes are weighted according to the amount of SOL staked with participating validators.
One proposal would accelerate the rate at which Solana reduces new issuance. The network currently cuts issuance by 15 percent annually, while the proposal would double that pace to 30 percent until the minimum inflation level is reached.
Another would restructure transaction fees and permanently destroy a portion of them.
CoinDesk estimated that daily burns could increase from around 650 SOL currently to between 7,500 and 9,000 SOL, worth as much as roughly $846,000 at Monday’s prices.
A third proposal would formalize Solana’s governance framework through a new constitution.
Altcoins extend rebound
TRON gained 0.12 percent in the supplied snapshot to $0.344639, while Hyperliquid rose 1.93 percent to $80.713 and Dogecoin advanced 1.43 percent to $0.092885.
Zcash gained 2.37 percent to $853.30, bringing its seven-day increase close to 68 percent, while Chainlink advanced 2.44 percent to $11.805.
Monero was another strong performer, jumping 7.61 percent to $451.319. UNUS SED LEO gained 0.54 percent to $9.3661, Cardano rose 3.97 percent to $0.2278 and Stellar advanced 2.48 percent to $0.19960.
Bitcoin Cash gained 3.88 percent to $278.04.
Canton increased 1.49 percent to $0.12554, Gram gained 0.81 percent to $1.5527 and Litecoin climbed 1.44 percent to $52.64.
Hedera advanced 3.34 percent to $0.08191, while Sui added 0.70 percent to $0.8275.
Smaller tokens diverge
Shiba Inu jumped 5.71 percent in the supplied snapshot to $0.00000667, although live prices continued to fluctuate quickly during the morning session.
Avalanche rose 2.93 percent to $7.67, Cronos gained 2.12 percent to $0.06168 and Bittensor advanced 4.25 percent to $243.31.
Uniswap bucked the broader rally, declining 0.72 percent to $4.4085. NEAR Protocol rose 0.44 percent to $1.9903, while OKB gained 3.16 percent to $117.70.
Aave was among the largest major decliners, falling 7.97 percent to $131.64 despite remaining up 49.13 percent over seven days.
Ondo gained 6.61 percent to $0.39260, Pump.fun declined 1.14 percent to $0.004892 and Aster advanced 2.40 percent to $0.6996.
World Liberty Financial’s WLFI token rose 0.80 percent to $0.0582, Pepe jumped 5.71 percent to $0.00000421 and Mantle added 1.42 percent to $0.5232.
Sky rose 1.70 percent to $0.06989 and Polkadot gained 1.09 percent to $0.918.
Ethena fell 5.61 percent to $0.1562, while MemeCore gained 2.34 percent to $1.8060 and Worldcoin rose 4.98 percent to $0.416.
Stablecoins hold pegs
Dollar-linked cryptocurrencies remained broadly stable despite the sharp increase in trading activity.
Tether slipped 0.03 percent in the supplied snapshot to $0.9998, while USDC held at $1.0003 and Dai eased 0.03 percent to $1.00010.
Ethena USDe and World Liberty Financial USD1 each traded close to $1.
Global Dollar fell 0.02 percent to $0.9999, while PayPal USD edged 0.01 percent higher to $1.0001.
Ripple USD remained around $1.00096, while USDD eased 0.11 percent to approximately $1.
Gold-backed cryptocurrencies were mixed. Tether Gold declined 0.05 percent to $4,631.20, while PAX Gold gained 0.17 percent to $4,638.
Regulation supports sentiment
Regulatory developments in Washington have provided another source of optimism.
Trump called on Congress last week to pass what he described as a fair version of the CLARITY Act, legislation intended to establish clearer rules governing whether cryptocurrencies fall under securities or commodities regulation and which federal agencies oversee the sector.
The legislation has advanced in the Senate but remains politically contested. Crypto companies argue that a comprehensive federal framework is necessary to provide lasting legal certainty for the industry.
Meanwhile, the Securities and Exchange Commission proposed new cryptocurrency rules on August 18 that could provide exemptions for certain token offerings and establish a safe-harbor framework under specified conditions.
The regulatory backdrop has therefore become more supportive even as uncertainty remains over when comprehensive legislation will ultimately become law.
Macro tests approach
The next major test for bitcoin will come from U.S. inflation and Federal Reserve policy.
The Bureau of Economic Analysis will release July Personal Income and Outlays data on Wednesday, August 26, at 8:30 a.m. ET, including the Personal Consumption Expenditures price index, the Fed’s preferred inflation measure.
A stronger inflation reading could lift Treasury yields and the dollar, potentially challenging the macro conditions that helped bitcoin break above $80,000.
A softer reading could reinforce the weaker-dollar and lower-yield environment that has supported both cryptocurrencies and gold.
Federal Reserve Chair Kevin Warsh will then deliver keynote remarks at the Jackson Hole Economic Policy Symposium at 10 a.m. on Friday, August 28. The symposium runs from August 27 to 29 under the theme “Financial Innovation: Implications for Payments and Policy.”
Rally faces overheating
The strength of the recent move also creates short-term risks.
CoinMarketCap’s Fear and Greed Index at 83 signals extremely bullish sentiment, while bitcoin’s rapid move from around $62,000 to above $80,000 in little more than a week has pushed momentum indicators toward overheated levels.
Bitcoin’s continued dominance near 60 percent also suggests that the market has not yet completed a broad rotation toward smaller cryptocurrencies.
CoinMarketCap’s Altcoin Season Index at 38 remains firmly on the Bitcoin Season side of the scale despite double-digit weekly gains in many major tokens.
The broader trend nevertheless remains substantially stronger than it was earlier in August.
Treasury buybacks have weakened the dollar, ETF investors have returned, regulatory sentiment has improved and bitcoin has broken through its long-term moving average and the psychologically important $80,000 level.
